In a dramatic surge that has captivated the cryptocurrency market, Bitcoin briefly crossed the $94,000 threshold on April 23, 2025, setting off a chain reaction of liquidations valued at $635.9 million within just 24 hours. This powerful rally has reinvigorated bullish sentiment, with some analysts now predicting a potential short squeeze that could propel Bitcoin to the psychologically significant $100,000 mark.
Massive Liquidations Rock the Market
According to data from CoinGlass, the lion’s share of these liquidations—more than $560 million—came from short positions, indicating that traders betting against Bitcoin’s rise were caught off guard by the sudden upward movement. Bitcoin led the liquidation cascade with approximately $230 million in shorts wiped out, while Ethereum followed with $109 million in liquidations as its price surged to $1,787, representing nearly a 10% gain.
Several major exchanges reported substantial liquidation volumes during this market volatility. Binance recorded the highest share during a recent four-hour window, with liquidations totaling $18.7 million, of which 78% were short positions. Bybit and OKX also experienced significant volumes of liquidated positions, underscoring the widespread impact of this market movement.
Breaking Through Key Resistance Levels
The latest surge represents Bitcoin’s climb to a 45-day high, with the cryptocurrency reaching $94,236 at its peak—a 6.29% increase over the day. This breakout occurred after Bitcoin had been consolidating below the $90,000 mark, with the decisive move above this resistance level triggering a cascade of short covering.
Market analyst Michaël van de Poppe identified this momentum shift, stating, “Solid upwards trend, break $87K and we’ll test $92-94K for Bitcoin. That’s what we’re seeing right now.” He added that the area between $93,500 and $95,250 would likely serve as a “short-term top and some consolidation” zone before the next potential leg up.
Solid upwards trend, break $87K and we’ll test $92-94K for #Bitcoin.
That’s what we’re seeing right now.
This is the area for a short-term top and some consolidation (between $93.5-95.25K).
Great signs on the board, it’s very likely that we’ll start the uptrend to an ATH. pic.twitter.com/ydw3xuQ4eQ
— Michaël van de Poppe (@CryptoMichNL) April 23, 2025
Also Read: Bitcoin Becomes Fifth Largest Global Asset, Surpasses Google’s Market Cap
Building Momentum for a Short Squeeze
The concept of a short squeeze has gained traction among traders as Bitcoin approaches the $100,000 level. A short squeeze occurs when traders who have bet against an asset are forced to exit their positions, typically by buying the asset, causing the price to rise even further in a self-reinforcing cycle.
Market analyst “Mister Crypto” shared a heatmap from Binance showing a significant build-up of liquidation orders around the $100,000 mark. “Liquidity is piling up around $100,000,” he noted, suggesting that many traders have set positions near that level. If triggered, these liquidations could create additional buying pressure, potentially propelling Bitcoin to new heights.
The increasing strain on bearish traders is becoming apparent as Bitcoin gains momentum. Short positions, which had been building during Bitcoin’s consolidation period, are now unwinding rapidly as the price action continues to favor bulls.
Institutional Interest Surges
The price rally has coincided with renewed institutional interest in Bitcoin. US Bitcoin exchange-traded funds (ETFs) recorded net inflows of $936 million on Tuesday alone—the highest single-day inflows since January 2025. This influx of institutional capital demonstrates growing confidence in Bitcoin as a legitimate investment vehicle and contributes to its price appreciation.
Bitcoin’s dominance in the cryptocurrency market has also reached 63.5%, its highest level since March 2021. This metric indicates that Bitcoin is capturing a larger share of the overall cryptocurrency market, as investors favor the leading digital asset over alternative cryptocurrencies during periods of market uncertainty.
Mixed Opinions on Breaking $100,000
Despite the optimism in some quarters, other market participants remain cautious about Bitcoin’s immediate prospects of breaking the $100,000 barrier. Vincent Liu, chief investment officer at Kronos Research, acknowledged that Bitcoin’s move to $94,000 reflects positive sentiment but warned that broader economic factors could influence whether it breaks through to six figures.
“Cleared tariffs and potential Fed rate cuts could ignite further momentum, while rate hikes or unresolved tensions may keep BTC range-bound,” Liu explained. He emphasized the importance of the upcoming Federal Open Market Committee (FOMC) meeting on May 6, as well as U.S. trade talks with India and China, as key variables that could impact Bitcoin’s trajectory.
The heatmap data and surge in short liquidations suggest a highly leveraged market environment, where many traders are taking directional bets. Bitcoin’s current price level has become a psychological milestone, with a significant amount of trading activity and open interest concentrated around the $100,000 level.
Global Economic Factors at Play
The recent rally in Bitcoin comes amid a backdrop of shifting global economic conditions. Reports suggest that de-escalating trade tensions between the United States and China have boosted global market confidence, creating a more favorable environment for risk assets like Bitcoin.
Additionally, President Trump’s statements regarding Federal Reserve leadership have contributed to market optimism. These developments have influenced investor sentiment, encouraging greater risk appetite and potentially driving capital toward cryptocurrencies.
Looking Ahead
As the market digests these developments, analysts are divided on whether Bitcoin can sustain its upward momentum or if the rally will stall below the $100,000 threshold. The cryptocurrency’s price action in the coming days will likely be influenced by a combination of technical factors, such as the liquidation cascade and market positioning, as well as fundamental drivers, including macroeconomic developments and institutional investment flows.
For now, traders are watching closely as positions build and market pressure grows. The $100,000 mark represents not just a numerical milestone but a psychological barrier that could determine Bitcoin’s trajectory for the remainder of 2025.
Whether Bitcoin ultimately achieves this milestone in the short term remains uncertain, but the recent price action has certainly reinvigorated the market and positioned the cryptocurrency for a potential test of this significant level. As veteran cryptocurrency analyst Arthur Hayes suggests, fiscal policies and Treasury operations could drive Bitcoin beyond $110,000, with potential for reaching as high as $200,000 if current trends continue.
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